This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.
₪100 in 1971
₪6,673,304.39 in 2021
The inflation rate in Israel between 1971 and 2021 was 6,673,204.39%, which translates into a total increase of ₪6,673,204.39. This means that 100 new shekels in 1971 are equivalent to 6,673,304.39 new shekels in 2021. In other words, the purchasing power of ₪100 in 1971 equals ₪6,673,304.39 in 2021. The average annual inflation rate between these periods was 24.88%.
The following chart depicts the equivalence of israeli new shekels throughout the years due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.
All calculations are performed in the local currency (ILS) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.
The following table contains relevant indicators:
| Indicator | Value |
|---|---|
| Total Inflation (1971-2021) | 6,673,204.39% |
| Annual inflation avg. (1971-2021) | 24.88% |
| CPI 1971 | 0 |
| CPI 2021 | 100.6 |
| ₪1 in 1971 | ₪66,733.04 in 2021 |
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.
Given that money changes with time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:
In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, the future value is the amount in 2021 that equals ₪100 in 1971 in terms of purchasing power. There are 50 years between 1971 and 2021 and the average inflation rate was 24.8783%. Therefore, we can resolve the formula like this:
FV = PV (1 + i)n = ₪100 * (1 + 0.248783)50 = ₪6,673,304.394432 ≈ ₪6,673,304.39
When the CPI for both start and end years is known, the following formula can be used:
In this case, the CPI in 1971 was 0 and in 2021 was 100.6. Therefore,
| Initial Value | Equivalent value | |
|---|---|---|
| ₪1 new shekel in 1971 | ₪66,733.04 new shekels in 2021 | |
| ₪5 new shekels in 1971 | ₪333,665.22 new shekels in 2021 | |
| ₪10 new shekels in 1971 | ₪667,330.44 new shekels in 2021 | |
| ₪50 new shekels in 1971 | ₪3,336,652.2 new shekels in 2021 | |
| ₪100 new shekels in 1971 | ₪6,673,304.39 new shekels in 2021 | |
| ₪500 new shekels in 1971 | ₪33,366,521.97 new shekels in 2021 | |
| ₪1,000 new shekels in 1971 | ₪66,733,043.94 new shekels in 2021 | |
| ₪5,000 new shekels in 1971 | ₪333,665,219.72 new shekels in 2021 | |
| ₪10,000 new shekels in 1971 | ₪667,330,439.44 new shekels in 2021 | |
| ₪50,000 new shekels in 1971 | ₪3,336,652,197.22 new shekels in 2021 | |
| ₪100,000 new shekels in 1971 | ₪6,673,304,394.43 new shekels in 2021 | |
| ₪500,000 new shekels in 1971 | ₪33,366,521,972.16 new shekels in 2021 | |
| ₪1,000,000 new shekels in 1971 | ₪66,733,043,944.32 new shekels in 2021 |
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